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BMW Confirms Cheaper LFP Batteries for EVs Outside China
BMW announced on its latest earnings call that it will use lithium iron phosphate batteries in some EV models outside China, potentially including Neue Klasse entry trims.
BMW confirmed during its latest earnings call that it will adopt lithium iron phosphate (LFP) battery packs for select EV models sold outside China. The move targets cost reduction on entry-level trims and could extend to the upcoming Neue Klasse platform, though the company did not specify which exact models or trims will receive the LFP chemistry.
What BMW said
The announcement came on the company's quarterly earnings call, where executives confirmed that LFP cells will be used in some EV variants outside the Chinese market. BMW did not confirm specific model names, price reductions, or a timeline for North American or European launch. The company's current mainline EVs use nickel-manganese-cobalt (NMC) cells, which deliver superior range and energy density but at a higher cost.
LFP in context
BMW has already deployed LFP batteries in China. The iX3 30 L, sold in the Chinese market, uses a 77 kWh LFP pack that delivers a 630 km range. The higher-spec iX3 40L and iX3 50L trims in China continue to use NMC packs, illustrating the tiered approach BMW is taking with battery chemistry.
Industry analysts expect BMW to follow a similar strategy globally: an entry-level LFP variant for the Neue Klasse range, with NMC reserved for higher-end trims that prioritise range and performance.
Supply-chain diversification
In the same announcement, BMW disclosed that it is broadening its battery supply network. The company has secured deals with Samsung SDI for European production and LG Energy Solution for U.S.-based production, both expected to ramp up at the end of the 2020s. This multi-source strategy reduces reliance on any single cell supplier and aligns with North American and European local-content requirements.
For Canadian buyers, the practical implication is that a future lower-trim BMW EV — possibly the Neue Klasse sedan or SUV — could arrive at a lower price point than the NMC-equipped version, making the brand more competitive against Tesla, Hyundai, and the growing field of Chinese-branded EVs entering the Canadian market.
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